City Union Bank posts 16% rise in Q1 profit, asset quality improves

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 Old private sector lender City Union Bank (CUB) has reported a 16 per cent rise in its profit after tax of ₹264 crore for the first quarter ended June 30, 2024, when compared with ₹227 crore in the year-ago quarter, aided by lower provisions amid fall in operating profit.

The bank reported a drop in operating profit at ₹373 crore in Q1FY25 as against ₹414 crore in the year-ago quarter.

While interest income increased by 10 per cent to ₹1,388 crore in the June 2024 quarter when compared with ₹1,266 crore in the June 2023 quarter, the non-interest income was flat at ₹192 crore (₹191 crore). Total income grew 8 per cent to ₹1,580 crore when compared with ₹1,457 crore. Net interest income was up 4 per cent to ₹545 crore when compared with Rs.523 crore. 

The bank made a provision of ₹109 crore as of June 30, 2024 against ₹187 crore in the corresponding period last year.

The gross non-performing asset (GNPA) ratio dropped to 3.88 per cent in Q1 of this fiscal from 4.91 per cent in the June 2023 quarter, while net NPA fell to 1.87 per cent from 2.51 per cent in the year-ago quarter. 

The bank’s return on assets stood at 1.51 per cent as against 1.40 per cent.

The total business of the bank grew by 8 per cent to ₹1,01,405 crore (₹94.060 crore in Q1 of last fiscal). Deposits grew by 6 per cent to ₹54,857 crore, while advances increased by 10 per cent to ₹46,548 crore. CASA grew by 2 per cent to ₹16,195 crore. 

As of June 30, 2023, the bank’s capital adequacy, as per Reserve Bank of India guidelines on Basel III norms, was 23.58 per cent and Tier-1 capital adequacy was 22.55 per cent, well above regulatory requirements, it said.